Example 3: Sales Order in which the Taxed Extended Price is Entered by the User

In this example, the tax rate is 7.3% and the transaction quantity is 7.

If you enter a sales order with the taxed extended price of 107.1, the system completes the following steps:

  1. Calculates the taxed unit price by dividing the taxed extended price by the quantity: Taxed unit price = 15.3000

  2. Uses the existing tax calculation logic to calculate the unit price and unit tax amount:

    • Unit price = 14.2591

    • Unit tax amount = 1.0409

  3. Calculates the taxed extended price by multiplying the taxed unit price by the quantity: Taxed extended price = 107.10

    Note: The system recalculates the taxed extended price.
  4. Uses the existing tax calculation logic to calculate the extended price and extended tax amount:

    • Extended price = 99.81

    • Extended tax amount = 7.29